[BREAKING] Fed Cuts Rates, But Card Issuers Unlikely To Follow Suit

[tylerdee]

Source: CreditCards.com

In an effort to revive a battered economy, the Fed cut its benchmark rate by half a percentage point. Committee members voted unanimously on Wednesday to drop the federal funds rate from 1.5 percent to 1 percent, equalling the rate's all-time record low.

Read more: http://www.creditcards.com/credit-card-news/federal-reserve-cuts-rates-october-2008.php

[Stellabella]

1. There really needs to be a limit on credit card rates.

It's usury, plain and simple.

[onehandle]

2. It's in Obama's blueprint. nt

[Stellabella]

12. Yep - hooray!

I can hardly wait!

[sarcasmo]

14. With a limit to the amount of credit cards one person can have.

[CoffeeCat]

3. Credit cards can do whatever they please...

Our Congress critters helped to relax the laws that govern the credit-card industry.

The credit-card companies can charge you whatever interest rate they feel like charging.

They could call you tonight, and demand your balance in full, within 24 hours.

They can decide that they don't want to issue you any more credit--then cut you off and
demand payment in full.

It's all in the fine print--that most of us don't read.

I wouldn't enter a relationship with anyone who had such power over me or my finances.

[Sherman A1]

5. The Key is to use them and not let them use you.

I use them for everything I can put on the card (gas, car insurance, phone bill, groceries, etc) and pay them off each month taking advantage of their rebates and cash back programs. It's money that I will be spending anyway and the prices are no better if I would pay cash so I use the card(s) to get the best deal I can on the particular purchase.

If they call and demand payment today, fine... I move my business down the street.

[eggplant]

9. Except this isn't true.

It is true that YOU are getting more out of them than you are putting in, but that money doesn't come from the credit card companies, it comes from the retailers which take them. That $100 at the grocery store you could have paid with cash? $2-$4 (or so) goes from the store to the credit card company. And the store has to make it back somehow, so up go the prices for everyone.

[Sherman A1]

11. You are correct, however

since I don't or can't get a cash discount the only way to get anything is through the rebate program offered by the CC Companies. If you don't game the system, then you are paying too much. I ran a store myself for 18 years and know very well how merchant fees work as they came directly out of my bank account.

[durablend]

15. And if they didn't have those credit card fees...

They'd lower their prices to match?

Yeah, didn't think so...

[Eurobabe]

10. They can also kiss my ass.

[dixiegrrrrl]

13. Quiz time..

What state has the most lax rules on credit cards and other consumer credit, thus most cards are incorporated there????

Hint: same state Joe Biden is from.

[Politicalboi]

4. More BREAKING

Obama's going to be on Rachel's show tomorrow night.

[tylerdee]

8. Awesome!

[nyc 4 Biden]

6. Great story in NYTimes about credit cards today...

http://www.nytimes.com/2008/10/29/business/29credit.html?_r=1&ref=todayspaper&oref=slogin

The story basically says credit card companies will be:

raising rates
lowering credit lines
raising standards
dropping cardholders
limiting rewards

[xchrom]

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